Soft futures; Sugar, coffee higher as traders eye currency movements
Investing.com
Published Aug 26, 2013 07:47AM ET
The real was steady against the U.S. dollar, with USD/BRL inching up 0.02% to 2.3492.
Brazil is the world's largest producer and exporter of sugar and Arabica coffee beans. When its currency weakens, farmers tend to ship more sugar and coffee, as it boosts the value of overseas income at Brazilian exporters when repatriated.
On the ICE Futures U.S. Exchange, sugar futures for October delivery traded at USD0.1656 a pound, up 0.75%. The October contract settled up 1.2% at USD0.1647 a pound on Friday.
Prices of the sweetener rose by as much as 0.85% earlier in the session to hit a daily high of USD0.1657 a pound, the strongest level since August 20.
Sugar prices rallied on Friday as the Brazilian real bounced off a four-and-a-half-year-low against the U.S. dollar, discouraging growers to sell their crops.
Brazil is the world's largest producer and exporter of sugar.
Elsewhere, Arabica coffee for December delivery traded at USD1.1798 a pound, up 0.75%. The December contract settled little changed at USD1.1705 a pound on Friday.
Arabica prices rose by as much as 1.15% earlier in the session to hit a daily high of USD1.1840 a pound.
Brazil is the world's largest producer and exporter of Arabica coffee.
Meanwhile, cotton futures for December delivery traded at USD0.8469 a pound, up 0.7%. Prices held in a range between USD0.8427 a pound, the daily low and a high of USD0.8494 a pound.
The December contract settled down 0.1% at USD0.8408 a pound on Friday, after hitting a session low of USD0.8393 a pound, the weakest level since July 18.
Cotton prices plunged almost 10% last week amid indications of improving global crop prospects.
Some technical selling also contributed to losses as a wave of long liquidation by institutional investors was triggered after prices broke below key support levels.
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Written By: Investing.com
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